Filed Under:Technology, Tech Management

Good Start to 2012 Expected for P&C Industry: KBW

NU Online News Service, April 16, 12:00 p.m. EST

Due to low catastrophe activity Keefe, Bruyette and Woods expects good first-quarter earnings for the property and casualty insurance industry.

In an earnings preview, the global investment bank says “the financial impact of catastrophes appears to have been relatively mild” in the first quarter. Plus, many companies balanced reserves during the 2011 fourth quarter for catastrophes last year, so the firm expects “little noise from prior events.”

As a result, KBW says it has raised earnings-per-share estimates for many of the insurance carriers and brokers it follows.

Rates are up in the mid-to-high single digits in U.S. commercial and low double digits in U.S. reinsurance sectors, observes KBW.  Increases are also seen in places that experienced larges losses in 2011, with flat to slight increases across most other lines.

However, benefits from reserve releases could decline in the first quarter, and low investment yields are ongoing, adds KBW.

For personal lines, rate increases in the 5 percent to 7 percent range are being seen in homeowners. Increases are in the 2-to-3 percent range for auto, and KBW expects a premium growth rate of 5 percent to 7 percent.

KBW says earnings for Bermuda reinsurers will be aided by favorable renewals at Jan. 1, and there were few first-quarter costly catastrophes.   

Turning to regional agencies and specialty carriers, KBW says its expects pricing commentary during first-quarter conference calls to be positive, but it’s unclear whether rate increases will show up in reported premium growth.

Top Story

Staples says it’s probing potential credit-card data breach

Staples Inc., the world’s largest office-supply chain, is investigating a potential breach of customer credit-card data, becoming the latest retailer to confront a threat from hackers in recent months.

Top Story

Men more likely to believe insurance myths, except for that one about the red car

Men are more likely than women to mistakenly trust myths about buying insurance. And that's just the start of it, fellas.

More Resources

Comments

eNewsletter Sign Up

Tech Digest eNewsletter

Technology related insights for insurance professionals including key developments, solution providers and news briefs from the carrier front – FREE. Sign Up Now!

Mobile Phone
         
Close

Advertisement. Closing in 15 seconds.